Solar Rebates and Incentives for the Dallas-Fort Worth Metro Area
October 23, 2017
The Dallas-Fort Worth (DFW) Metroplex is one of the fastest-growing, most innovative places in America. What’s more, it’s becoming increasingly easier to go solar in this area.
Federal Solar Rebates and Incentives for DFW
Texas offers a range of solar power incentives starting on a federal level. They apply to DFW along with every other city in the state. The Solar Investment Tax Credit (ITC) is the most well known. It’s a dollar for dollar reduction on your income taxes when purchasing any solar equipment.
Since Biden signed the Inflation Reduction Act into law, you can receive a 30% tax credit for any solar project installed between 2022 and 2032. It’ll decrease to 26% in 2033 and 22% in 2034, after which it will expire.
State and Local Solar Rebates and Incentives for DFW
Most utilities in DFW offer rebates to savings-seeking homeowners and eco-friendly business owners on a price-per-watt basis that’s usually capped at a maximum amount per project installed. Funds are released on a periodic basis, such as by the year, or in perpetuity.
All utility programs, rebates, and incentives (including loan programs) have an application process that your solar installer can help you manage.
Net metering is a billing arrangement between a utility company and a property owner. It allows the excess energy that your solar system produces to be sold back to the city’s grid. The money you earn is usually applied as a credit on your next billing cycle.
While many utilities in Texas will handle the interconnection and meter measuring of your solar energy device, your Retail Electric Provider (REP) oversees billing.
Solar and Wind Energy Business Franchise Tax Exemption
The Solar and Wind Energy Business Franchise Tax Exemption is a financial incentive for commercial and industrial sectors.
Texas companies that solely engage in the manufacturing, selling, or installing of solar equipment are exempt from franchise tax. The franchise tax is equivalent to a corporate tax in Texas, and this exemption in particular has no maximum cap.
LoanSTAR Revolving Loan Program
The LoanSTAR Revolving Loan Program is a low-interest revolving loan program that will finance any energy-related costs for state, college, university, public school, and nonprofit hospital facilities.
This financial incentive relates to solar energy byway of on-site energy-efficient lighting systems and solar PV systems. All LoanSTAR projects are required to be analyzed by a professional engineer as well as meet other select technical guidelines. The payback period is 10 years or less.
Renewable Energy Systems Property Tax Exemption
The Renewable Energy Systems Property Tax Exemption is a property tax incentive for the residential, commercial, and industrial sectors.
The exemption amount covers 100% of the appraised home property price increase of the installation or construction of a solar energy device. Any energy generated from the system needs to be for on-site use or stored in on-site devices such as a backup battery for home or Tesla PowerWall.
Solar and Wind Energy Device Franchise Tax Deduction
The Solar and Wind Energy Device Franchise Tax Deduction is a financial incentive for the commercial and industrial sectors.
Texas allows corporations to deduct the cost of their solar energy device from their franchise tax in only one of the following ways:
- The system’s total cost can be deducted from the company’s taxable capital.
- 10% of the system’s cost can be deducted from the company’s income.
Solar Rights Law
Although it’s not necessarily a financial incentive, Texas has a solar rights law. If you live in a neighborhood that’s governed by a Homeowners Association (HOA) and you’re concerned about regulations holding you back from going solar, worry no more.
Texas’s solar rights law prevents HOAs from banning the installation and use of solar energy systems on properties. You can confidently go solar and gain energy independence without any HOA restrictions holding you back.
[Related: What to Know Before Installing Solar Panels]
Contact Freedom Solar to Learn More
If you’d like to learn more about solar rebates and incentives, or if you’re ready to start harnessing solar power, contact us today. Call solar panel company Freedom Solar at +1 (800) 504-2337 or complete our inquiry form and one of our solar specialists will be in touch!
Looking to maintain, repair or upgrade your solar system? Our solar repair and maintenance service department can help you obtain maximum energy production and efficiency.
* Tax credits are subject to change. Consult your tax advisor regarding how incentives and rebates apply to your specific circumstances. Visit the DSIRE website for detailed solar policy information. We do not provide legal or tax advice.